Which of the Following Is Correct Regarding a Change in Beta

question 48

Multiple Choice

Which of the following is correct regarding a change in beta and its potential impact on a stock's price?

• A)Any change in beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely have an impact on the stock's price.
• B)Any change in beta is not likely to affect the required rate of return on a stock. However, which implies that a change in beta will likely have an impact on the stock's price.
• C)Any change in beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely not have an impact on the stock's price.
• D)Any change in beta is not likely to affect the required rate of return on a stock, which implies that a change in beta will not likely have an impact on the stock's price.